Among the various metrics that app marketers rely on, Effective Cost Per Install (eCPI) stands out as a crucial benchmark. eCPI measures the efficiency of your advertising efforts by calculating how much it costs to acquire a single app install. Understanding and optimizing eCPI can help you allocate your marketing budget wisely, enhance your app’s visibility, and ultimately drive better results.
What is Effective Cost Per Install (eCPI)?
Effective Cost Per Install (eCPI) is a financial metric that app marketers use to determine the average cost incurred for each app installation driven by a marketing campaign. Unlike CPI (Cost Per Install), which often refers to the predetermined cost set by advertisers for acquiring an install, eCPI reflects the actual expenditure, factoring in all marketing expenses. It provides a clear picture of the real return on investment (ROI) for your app install campaigns.
eCPI is particularly useful in assessing the performance of multi-channel campaigns. For instance, if you run advertisements across platforms like Google Ads, Meta Ads, and TikTok, eCPI consolidates the total spend and number of installs to deliver a unified metric. This helps you evaluate which channels or strategies are most cost-effective.
The formula
eCPI = Total Cost / Number of Installs
For example, if a mobile advertising campaign costs $1,000 and generates 500 app installs, the eCPI would be $2 ($1,000 / 500 = $2). This means that, on average, each app installation in that campaign cost $2.
eCPI is a valuable metric for app marketers as it allows them to evaluate the efficiency and profitability of their user acquisition efforts. By comparing eCPI across different campaigns or advertising channels, marketers can determine which sources provide the most cost-effective installations and allocate their budgets accordingly. Lower eCPI indicates more efficient user acquisition, while higher eCPI may warrant further optimization or reevaluation of the advertising strategy.
Effective Cost Per Install (eCPI) is more than just a metric; it’s a cornerstone of informed decision-making in mobile app marketing. By calculating and optimizing eCPI, you gain deeper insights into the performance of your campaigns, enabling you to fine-tune strategies and achieve sustainable app growth. Whether you’re aiming to maximize ROI or compare the effectiveness of different marketing channels, eCPI is a metric that no app marketer can afford to overlook.
